hicks magazine february 2012

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hicks magazine 2012




    R 2



    UnderstandingBBBBB AAAA PAPBBBPB


    Greg Hicks


  • From the editorPeter M. Bakker Peter M. Bakker agency, Inc.

    contributing authors

    other sources

    executive staff

    Insurance InforMatIonInstItuteIII.org

    Peter M. Bakker agency, Inc.

    ted BakerexecutIve edItoradvanced autoMatIon

    BenjaMIn allowayassIstant edItoradvanced autoMatIon

    sarah scottdesIgner

    evolve & adaptThe new world of insurance

    Drive through restaurants, automated banking, and online service agents: It seems that today everyone wants things on their schedule, and right now. People assume insurance should be the same way. The problem is that insurance is different, regardless of what commercials tell us.

    Insurance is not a commodity like TVs or cars or computers. It is not something that can be bought

    or sold casually or without planning. Why? A wrong insurance decision can affect the lives of the individual, their family, their future and their business. We can always correct a wrong purchase decision by buying another product. But what happens when the wrong insurance decision results in a child not being able to go to college, or a family losing their house, or an employee losing their job. There is a lot at stake.

    Personally, I like the ability to call the garage that I use and tell them what I need done on my car. It seems like I should be able to do the same thing when I need to make changes to my insurance. The difference is that my insurance policy is a legal contract. Imagine calling an attorney and asking them to make a change to your will. They are going to need some type of verification, both for their protection and yours.

    The problem is that for decades this is the way people have handled their insurance. On a cocktail napkin or by a phone call. But this was before the evolution of the litigious society that we live in. This was before 9/11 and having to take our shoes off before boarding an airplane. The sad, unfortunate truth is that the world has changed and our ways of doing business have changed along with them. Do we like it? No. Must we adapt to it? Yes.

    So please understand when we ask more questions than other agents. Or when we ask you to submit your requests through our secure website or in writing. All of these things are for your protection and are a part of the world we live in.

    Ted BakerExecutive Editor

  • contentsIssue 2 March 2012

    P. 20

    P. 09

    P. 17

    P. 19

    What is covered by a Basic Auto Policy?

    Do I need Business Interruption Insurance?

    Small Business Insurance Basics

    Should I purchase an Umbrella Liability Policy?


    P. 21

    P. 23

    Medicare 2012

    Safety Tips for Students Abroad


    P. 03

    P. 05

    P. 07

    Teen Tips on Encouraging Driver Safety

    Financial Planning Helps Manage Student Debt

    Fire Safety Room by Room


    P. 13

    P. 15

    Wireless Technology Helps Improve Healthcare

    How to manage Small Business Computer Security


    P. 11

    P. 25

    Keep your Mental Edge as you age

    Stress Busters


    departments on the cover






  • All too often, news headlines tell of another teen killed in a car crash. It is estimated that 35 percent of teen casualties are due to vehicular driving accidents, making it the leading cause of death among teenagers in the U.S., according to the National Highway Traffic Safety Administration.

    Through their participation in a high school program called Proj-

    teen tipsect Ignition, thousands of young people have stood up to this sta-tistic and worked tirelessly to change the driving behaviors of their peers and broader communities.

    If you have a teen driver in your family who you want to help become safer on the road, here are some tips from students in Project Ignition:

    Teens Offer Parenting Tips that Encourage Teen Driver Safety

  • 1 Open the lines of communicationTalk with your teen about distracted driving. Make sure you both understand what things are dangerous distractions. Listen to your teen. Ask about what its like being in the car with other teens, and what distractions there are to handle.

    2 Offer SupportEncourage your teen to use his or her voice. Role-play with your teen so that he can become comfortable saying things like, We both want to live, so let me answer your phone or text while you drive. Help your teen get involved with programs at school like Project Ignition, so that she can be a positive example and make an impact.

    3 Set RulesSet family ground rules for texting and calling while driving. Your teen needs to know you have high expectations, and what the consequences will be if the rules arent followed. Know where your teen is going, who he will be with, and what time he is expected home.

    4 Be a positive exampleModel the behavior you want your teen to exhibit. If the phone rings while youre driving, dont answer it. Encourage your teen to answer your phone or text, al-lowing you to drive more safely. Speak up about distracted driving to your friends and peers in front of your teen driver. Help set an example, spread the word and save lives.

    Additional information can be found at www.sfprojectignition.com

    Project IgnItIonA service-learning program coordinated by the National Youth Leadership Council and funded by State Farm, makes grants available to public high schools in the U.S. and Canada.

    The program provides young people the opportunity and tools necessary to take the lead in addressing teen driver safety issues in their communities by linking public service to academic cur-riculum.

    How It worksTwenty-five schools will be chosen to receive $2,000 grants to support the implementation of teen driver safety awareness and engagement campaigns.

    Ten of these 25 schools will be given $5,000 to sponsor their par-ticipation in a significant national conference or event. They will also be given the opportunity to receive an additional $2,500 to go deeper with their campaigns during the 2012-2013 school year.

  • In an increasingly competitive global market, educa-tion is becoming more important. But many families find the cost of education to be outside their grasp. Ac-cording to a study commissioned by the US Depart-ment of Education, from the 2001-02 to the 2010-11 academic year, the cost of attending a 4-year undergrad-uate in-state school rose by 47.3 percent.

    With ever-increasing education expenses, many fami-lies are accumulating significant debt, putting students further behind. However, with planning and financial management, students can control their finances. Here are some tips for parents of soon-to-be college students. Start the conversation. Talk with other parents, teachers and guidance counselors about the cost of education. Make contact with the student financial aid offices of the colleges on your childs list and get an accurate esti-mate of the cost of each institute. Most importantly, talk with your child. It is imperative your child learns the budgeting process as they will soon be managing their finances away from home.

    SeT THe budgeT and STIck To ITOnce you have a set budget, add wiggle room for other unforeseeable expenses. Make sure you set this budget realistically. Calculating the cost of pens and pencils may seem ludicrous, but if youre on a tight budget, ev-ery expense counts.

    geT connecTedTracking your financial spending is easier than ever. From smart phone apps to free financial planning soft-ware, you can get an accurate financial report at any time. Research banks to determine which ones offer services to help you can stay on top of your budget. Also, consider linking your banking account with your childs, to easily transfer funds online.

    Make a pLanWhen taking on debt, it is important to have a plan for paying it off. Calculate the monthly payments and time it will take your child to pay off the debt. Research salary ranges for the field in which your child plans to

    Financial Planning Helps Manage student debt

  • pursue a career to understand the debt they can realis-tically carry. Find more information and calculators to help determine payment schedules and interest rates at www.direct.ed.gov.

    do your reSearcHBefore taking out a student loan, look to other options, such as financial aid and scholarships. While some scholarships are awarded on academic merit, others are given based upon both academic performance and community service. ForestersTM, a life insurance pro-vider committed to the well-being of families and their communities, is one organization that provides a com-petitive scholarship program1 open to eligible members or their dependent children, including grandchildren, worth up to $8,000.

    Recipients can use the scholarship to attend accredited universities, colleges and vocational schools, as long as they are pursuing their first post-secondary degree or

    diploma. There are up to 350 Foresters Competitive Scholarships available, in the US and Canada includ-ing five Ken Peterson Awards for Community Service. These awards are worth up to $11,000.

    Learn more about the scholarship opportunities award-ed by Foresters at www.foresters.com/membership/scholarships.asp.

    ForesterstM is the trade name and a trademark of The Independent order of Foresters, 789 Don Mills road, to-ronto, canada M3c 1t9; its subsidiaries are licensed to use this mark.

    1This program is administered by I